It seems that the crisis caused by Covid-19 did not greatly affect the Mozambican banking sector that in general has been showing positive financial results. "2021 was another year in which Standard Bank achieved very positive results. We reached a net result close to 5 billion meticais, only 9% below 2020", said Bernardo Aparício, Standard Bank administrator, during the presentation of the 2021 report and accounts, today in Maputo.
"These net results allowed us to achieve a return on equity of 16%," he adds.
In the same period, revenues grew in 8%, from 13.9 billion to 15 billion meticais. In turn, net interest income increased in 201Q2Q, from 8.9 billion to 10.7 billion meticais.
In terms of capital, Standard Bank maintains a robust position presenting a solvency ratio of 22.2%, significantly above the regulatory minimum of 12% plus an additional 2% required of the bank by the regulator in view of the systemic bank classification.
As for the liquidity ratio, it stood at 76.5%, well above the 25% required in regulation, meaning that the bank is "adequately capitalized and has the necessary liquidity for future growth opportunities."
In general, the bank's administrator considers that "the results are quite positive in view of the impacts of the 2021 due to the pandemic and the impact it had on economic activity, both in the revenue line, but also in the cost line.
From the point of view of costs, Standard Bank recorded an increase of about 17% as a reflection of several factors that characterized the year 2021, with emphasis once again on the Covid-19 pandemic, which led the bank to invest in human, technological and protection means for its employees and customers, as well as investments in technological infrastructure under the "Ready for the Future" strategy.
The efficiency ratio followed this reality, rising from 47.3% in 2020 to 51.2% in 2021. As a way to help Small and Medium Enterprises (SMEs) to counter the challenges imposed by the pandemic, Standard Bank promoted in 2021 the contest "Accelerate Your Business", through which the bank offered a total of 18 million meticais, in addition to other business support benefits.
Regarding social initiatives, Standard Bank, among several activities, continued with its environmental project of tree planting, which aims to help protect the environment and minimize the impact of natural disasters, which are increasingly frequent in Mozambique.
The institution points to the covid-19 pandemic, the armed attacks that led to the suspension of the gas project in Cabo Delgado, and the Bank of Mozambique's decision to suspend the Foreign Exchange Market Standard for several days as obstacles.
"While our net interest income grew by 19.81TP2Q, compared to the previous year, other income fell by 11.71TP2Q, negatively influenced by results from financial operations that were substantially lower," notably in July, the month of the suspension.
Regarding the "serious prudential and exchange violations" alleged by the regulator against Standard - leading to the disqualification of the former CEO and another manager - the bank states in its annual report that measures have been taken.
"This situation does not define us as a bank," reads the document.
"In addition every effort is currently being made to ensure that the bank complies with the regulations, at all levels and at all times," it adds.
Credit growth was fueled by the release of liquidity promoted by the Bank of Mozambique, by reducing the reserve requirement ratio - thus also allowing for an increase in earning assets by 8.9%.